The gender pay gap gets attention because it’s visible. It shows up in
salaries, job ads and annual reports. It’s measurable and immediate.
But the bigger cost often arrives later, quietly, and with far less scrutiny.
In the UK today, the gender pension gap sits at over £110,000. That’s the
difference between what men and women typically retire with in private
pensions. It’s not a marginal gap. It’s the long-term consequence of careers
that don’t play out equally over time.
Why the pension gap matters
Scottish Widows’ analysis shows the median private pension pot at retirement is
around £286,000 for men and £173,000 for women, leaving a gap of approximately
£113,000.
This gap is driven by lower average earnings, slower progression, career
breaks, part-time work, missed employer pension contributions, and reduced
compound growth.
Pay gaps are only part of the story
ONS data shows women are far more likely than men to work part-time,
particularly between the ages of 30 and 50, the years when career progression
and pension contributions have the greatest long-term impact.
Around 38% of women aged 30–49 work part-time compared to roughly 13% of men.
Flexibility and who carries it
The Working Families Index shows that around 9 in 10 parents who reduce their
hours after having children are women.
This reflects how flexibility is designed and who it ultimately benefits.
What employers need to think about
Clear progression pathways, meaningful part-time roles, structured return
programmes and open pension conversations materially change outcomes.
Research from the Pensions Policy Institute shows that even a five-year break
or reduction in pension contributions can reduce retirement income by tens of
thousands of pounds.
Policy alone doesn’t fix this
From April 2024, the right to request flexible working became a day-one right
in the UK, but confidence in using it still varies by seniority and income.
The point
The gender pay gap makes headlines because it’s immediate. The pension gap is
quieter, but it’s where the real cost shows up.
The choices made today shape financial outcomes decades from now.
Sources & further reading
Scottish Widows – Gender Pension Gap
Office for National Statistics – Gender pay gap in the UK
Office for National Statistics – Employment by hours worked and sex
Working Families – Working Families Index
Pensions Policy Institute – Women and pensions
UK Government / Acas – Flexible working reforms
